If borrowers have made payments that are equal to what they would have paid in a qualified repayment plan, those payments will be
credited toward loan forgiveness.
Furthermore, you will not be able to carry any progress you have made so far
toward loan forgiveness program into the new consolidation loan you are getting.
If you're making payments under an income - driven repayment plan and also working
toward loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program, you may qualify for forgiveness of any remaining loan balance after you've made 10 years of qualifying payments, instead of 20 or 25 years.
The total number of borrowers submitting the Employment Certification Form for Public Service Loan Forgiveness (PSLF), which helps to track
progress toward loan forgiveness, has increased dramatically over the last several years, rising from 25,683 in 2012 to 552,931 in 2016.
Borrowers who have consolidated in the past and have accrued
time toward loan forgiveness would lose credit for that time if they re-consolidated.
My comment or request for help is that the rules be written so that older borrowers like myself qualify for better programs like PAYE, and that we don't lose our years of
repayment toward loan forgiveness under another servicers when we switch to the program.
The White House has stated that changes to PSLF will apply only to new borrowers and not those who are currently working
toward loan forgiveness under the program
If you're making payments under an income - driven repayment plan and also
working toward loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program, you may qualify for forgiveness of any remaining loan balance after you've made 10 years of qualifying payments, instead of 20 or 25 years.
You can apply for a Direct Consolidation Loan and convert those loans to direct loans that qualify for REPAYE, but you will lose any
credit toward loan forgiveness.
Forbearance allows loan payments to be temporarily suspended, and a long delay in the IDR recertification can prevent borrowers from making
progress toward loan forgiveness.
These Plaintiffs were informed that their prior public service would no longer be considered eligible and their prior payments would no longer
count toward loan forgiveness under the PSLF program.
As you consider refinancing your student loans, be aware that working with a private lender isn't a wise move if you want to keep your federal loan protections or are working
toward loan forgiveness.
Further, if you've been working
toward loan forgiveness under an IDR plan or through another program, consolidating your loans would erase your progress.
One borrower claimed they were misled by their servicer and made four years of payments that won't count
toward loan forgiveness.
[raw] President Trump's budget calls for the elimination of the Public Service Loan Forgiveness Program The proposal is not yet law, and such dramatic changes to the federal budget are expected to be met with significant opposition from Congress The White House has stated that changes to PSLF will apply only to new borrowers and not those who are currently working
toward loan forgiveness under the program The Budget Proposal President Trump's budget calls for dramatic cuts to... [Read more...]
Payments made under these income - driven plans can be as low as zero dollars and count
toward loan forgiveness.